The New York Stock Exchange plans to start trading all-or-nothing options on 12 stocks and exchange-traded funds within days. Nvidia, Apple and Tesla are among the first underlyings. Cboe and MEMX are also bringing binary contracts to US options markets this year.
The New York Stock Exchange (NYSE) plans to start trading all-or-nothing options on 12 stocks and exchange-traded funds within days, Reuters reported on Tuesday. The first underlyings include Apple, Nvidia, Tesla and the SPDR S&P 500 ETF Trust.
The contracts, called binary return options, pay a fixed amount if a share closes above or below a set price, and nothing if it does not. NYSE plans to add more underlyings over time.
Demand for yes-or-no bets grows
US demand for these products has grown fast. Monthly event contract volume rose from about $1 billion in 2024 to more than $50 billion in July 2026, the Committee on Capital Markets Regulation said this month.
Kevin Tyrrell, NYSE's chief product officer, told Reuters: "We've seen this incredible growth in the US options market over the last several years".
Cboe and MEMX are at different stages
NYSE joins Cboe and MEMX in bringing binary contracts to US options markets this year. Cboe has listed yes-or-no options on the Mini-S&P 500 since June. Its earnings contracts are next, and the US Securities and Exchange Commission cleared them on October 13.
MEMX filed for similar earnings contracts in August and NYSE in September. NYSE's earnings contracts, which still await SEC approval, would pay $1 or nothing, depending on whether a figure reported to the SEC meets a strike.
The single-stock product dates to 2007
The single-stock contracts run under rules NYSE American has carried for years. The SEC approved them in August 2007 as Fixed Return Options on stocks and ETFs. NYSE describes each contract as paying a fixed $100.
Source: Finance Magnates
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